Paying too much tax

cherry76

If you do nothing do you eventually get a refund or do you have to to write and ask for a refund? Thanks

Dazed_and_confused

Usually it will be refunded automatically, anytime in the six months after the tax year ends, but there are exceptions.

For instance if you need to complete a tax return then nothing will be repaid until you file the return.

JonVarnas

They'll write to you notifying you of any refunds with two options to get it: either register online and get it paid direct to your account within 5 working days or if you haven't claimed within two months of the letter, they'll send a cheque out to you.

I got letter from them this week informing me that I'm due a refund of nearly £400, which is nice.

cherry76

Thanks it is just son had a backpay and income tax took £400 in that week.The net pay for that week was approx £1100. He does not get that amount each week. Previously when he forgot to submit his weekly time sheet and when he submitted two he got taxed at a higher rate. Ringing Income Tax did not help. Told him just let it be he will be refunded in due course could be months. He is on the right tax code but when he got taxed at higher rate his tax code changed and then back at normal rate . I do not understand why it keeps changing depending of how much he has earned that week. Thanks

chrisbur

cherry76 wrote: »

Thanks it is just son had a backpay and income tax took £400 in that week.The net pay for that week was approx £1100. He does not get that amount each week. Previously when he forgot to submit his weekly time sheet and when he submitted two he got taxed at a higher rate. Ringing Income Tax did not help. Told him just let it be he will be refunded in due course could be months. He is on the right tax code but when he got taxed at higher rate his tax code changed and then back at normal rate . I do not understand why it keeps changing depending of how much he has earned that week. Thanks

Without the full details cannot be precise but on the details given....

Tax of £400 with a net pay of about £1100 is what I would expect to roughly see for someone who is either on the emergency tax code 1185L week 1 or the normal code 1185L or thereabouts and has earnings very close to or over the point at which 40% tax is due.

When he forgot to put in his time sheet tax would only be affected if on a week 1 tax code but national insurance may not have been deducted correctly this sometimes occurs when payments are made late.

If the correct tax code is being used then the correct tax will be taken; if you do pay extra due to above average earnings the PAYE system will automatically correct this in following weeks, providing you are not on a week 1 code.

If you want the figures checking properly and that way knowing exactly what is needed if anything to correct then the following details are needed from the last payslip....
Taxable pay, tax paid, tax code/basis, week number or date paid, taxable pay to date and tax paid to date.
To check the national insurance from the payslip this double payment occured on....
The gross pay on which NI due and the employee's NI paid figure.

cherry76

Sorry I made a mistake with the tax now that I have checked the payslip. The amount of tax paid seemed correct. Tax code 974L cumulative. It is the other deductions which does not seem right and it seems he has been under paid. Not very good at figures, Chris can you check this for me pl. The details are gross £1256.17. Net £865.66. Bonus fixed amount £535.62, weekdays £720.55 this is usually his gross weekly pay. He got one off fixed amount bonus of £535.62. Deductions stat hol deed £77.61, N.I contributions £57.71, PAYE £198.20 and pension £18.62. Total deductions came to £352.14 according to my calculations and he should have been paid £904.03 pl correct me if I am wrong.He is on a casual contract working for an agency. Thanks

chrisbur

cherry76 wrote: »

Sorry I made a mistake with the tax now that I have checked the payslip. The amount of tax paid seemed correct. Tax code 974L cumulative. It is the other deductions which does not seem right and it seems he has been under paid. Not very good at figures, Chris can you check this for me pl. The details are gross £1256.17. Net £865.66. Bonus fixed amount £535.62, weekdays £720.55 this is usually his gross weekly pay. He got one off fixed amount bonus of £535.62. Deductions stat hol deed £77.61, N.I contributions £57.71, PAYE £198.20 and pension £18.62. Total deductions came to £352.14 according to my calculations and he should have been paid £904.03 pl correct me if I am wrong.He is on a casual contract working for an agency. Thanks

Is this payment being made by an umbrella company?

A gross of 1256.17 less 352.14 deductions would give a net of 904.03 not 865.66 as you say if it is an umbrella company there would also be their costs deducted and ers NI , any sign of this?

Can you explain what the "stat hol deed £77.61" is.

NI appears far too low

PAYE appears low but you cannot calculate tax on the earnings for one week. Tax is calculated on earnings to date in the tax year. To check tax you need to give figures for taxable gross to date, tax paid to date and the week number or date of payment.

cherry76

The company is Hays Personnel. He works for Greater London Authority. The £71.66 statutory holiday is money Hays deduct every week for holiday payment. I am on the iPad and am restricted will be able to provide more info when I use the desktop. Thanks

chrisbur

cherry76 wrote: »

The company is Hays Personnel. He works for Greater London Authority. The £71.66 statutory holiday is money Hays deduct every week for holiday payment. I am on the iPad and am restricted will be able to provide more info when I use the desktop. Thanks

Definitely sounding like an umbrella arrangement. a company called Parasol works with Hays have you seen any reference to them?

cherry76

Do not understand about umbrella company. What are the benefits?
Payment Date 19/10/2018
Tax Period 29 Tax Code 974L Tax Basis Cumulative NI Category A
Gross £ 1256.17 Net £ 865.66
Date Units Rate Adjustment Total
Bonus Fixed Amt 05/10/2018 535.62 1.00 535.62 0.00
Weekdays OT 12/10/2018 36.80 19.58 0.00 720.55
Stat Hol Ded 0.00 0.00 0.00 -77.61
NATIONAL INSURANCE Description Adjustment Total EE NI Cont 38.37 57.71
TAX Description Adjustment Total PAYE 198.20
Pension 18.62
Year to date
Gross Pay current 1178.56 year to date 17684.76
Taxable Pay current 1178.56 year to date 17684.76
NIable Pay 1178.56 year to date 17684.76
Tax current 198.20 year to date 2449.40
Holiday Earned current 4.44 year to date 169.71
Holiday Paid year to date102.00
Holiday Balance year to date 67.71
P45 Taxable Pay year to date 17684.76
P45 Tax Paid year to date 2449.40
Pension 18.62 year to date 336.83
Thanks for trying to help hope this makes sense to you. He will have to query it himself. With Hays if the hrly rate is £18, they deduct £2 for the holiday. I hate that, this gives you the impression you are earning more.

Dazed_and_confused

Tax Code 974L Tax Basis Cumulative

If that is the correct tax code then the tax should be correct for that employment (cumulative means it is recalculated accurately each pay day).

Tax deducted of £2449.40 using tax code 974L is correct for taxable pay of £17,684.76